There is another aspect when it comes to deciding what you will offer for any home, based on which of the 3 categories its price falls into for that neighborhood. There are some towns that have Villages within a town, it is important to remember that many times homes in these areas have a completely different market although they may be in close proximity to one another.
This is the case in Babylon Village, because of the different amenities the town offers & many of these homes are historical. Some may even have strict guidelines on what changes can be made to them, because they are historical to the village. This can also happen sometimes with homes that are located "South Of Montauk", they are considered more valuable than one perhaps 2 blocks north of Montauk Highway.
You should always take the time to meet with your Buyers Broker, and be sure that you are not comparing homes outside of the area or other homes you may have seen, with the one you are putting an offer in on. The term "Location, Location, Location" is still very true!
Now lets take a moment and talk about the 3 different categories, every home on the market falls into 1 of these 3 no matter what kind of sale it is.
Above Market Value
This is thankfully becoming less of a trend, with the market being "down" for quite sometime many homewoners have accepted that their home is not worth what it was perhaps 5 years ago. Sometimes we still see that overpriced home and I can gurantee you that the listing broker knows that it is, but may be having a hard time getting their seller to see it . They are more than likely silently praying for a offer close to market value to come in to give them a chance at doing their job, and getting the homeowner to take accept your offer!
These can potentially be a harder offer to get accepted because the homeowner needs to come down alot in their price, and you may only need to come up slightly to be at fair market value. Sometimes they may not be in the position to sell their home for what market value is because of how much they purchased it for, equity loans, or refinancing that they had done. These kinds of homes are the most unpredictable some sellers will tell their real estate agents they can not go below a certain number, and somehow that bottom line number can drop $50,000 out of no where.
When placing an offer on a home that is overpriced you should ask your Buyers Broker to present the offer directly to the seller themselves. It is your agents job to sell them on your offer, and to be sure that all the information was communicated clearly from your down payment, financing, and terms!
Market Value
This is where you really need to count on your buyers broker to find out the details, and works hard for you. They will be able to find out what the sellers motivation for selling is, meaning do they have another home under contract or are they still going need to find a home before you can close ?
Now you absolutely can offer less on this kind of home, but base your next counter offer on the homeowners reaction and offer. You do not want them to feel insulted by your offer especially since they have taken the time to be educated sellers and priced their home fairly.
Always remember a home that is priced fairly means that they will have other buyers viewing their home, and an offer can come in at anytime if you really love the home don't stand in your own way over something that will make a $20 difference in a mortgage payment!
Below Market Value
Now let me clear up another silly myth, just because a home is priced below market value does not mean that it is a wreck or falling apart. What it does mean is the house will be on the market for less than a month and it will more than likely be higher than what it was listed for and the homeowners more than likely had a handful of back-up offers!
I am asked by so many buyers why would a homeowner price it below the simple answer is they want the house to sell quickly. When your agent calls and tells you about this home, be sure to clear your schedule and get in as soon as you can! Speed can be the difference between you getting a great deal or not!
Now that you understand what kind of house is for sale, and what pricing category it falls into you are now one step closer to getting yourself an accepted offer! negotiating
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